er mit standards for its product: 2 pounds of month, 1,500 pounds of direct materials were price variance for last month was 37. A company developed the following per-unit standards for direct materials at S4 per pound. Last month, 1,500 poun purchased for $5.700. The direct materials price variance for A) $300 unfavorable. B) SISO favorable. C) S5,700 favorable. D) $300 favorable. e of a piece of equipment that costs $20,000 38. Brady Corp. is considering the purchase of a piece of equipment that Projected net annual cash flows over the project's life are: Year Net Annual Cash Flow $ 3.000 8,000 15,000 9.000 The cash payback period is A) 2.40 years. B) 2.29 years. C) 2.31 years. D) 2.60 years. 39. Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio? A) 40% B) 60% C) 70% D) 30% 40. Vektek, Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $1,025,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $1,050,000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12? A) $1,025 B) $1,050 C) $51,250 D) $52,500 Version 1 Page 12